RPM International Inc. has reported slight declines in sales, net income and diluted earnings per share for its fiscal 2011 first quarter, ended August 31. The declines were primarily attributable to the deconsolidation of Specialty Products Holding Corp. (SPHC) subsidiaries, all of which reported through RPM’s industrial segment, at the end of the company’s 2010 fiscal year.

The deconsolidation eliminated nearly $300 million in annual revenues from RPM’s results, beginning in fiscal 2011. On a pro-forma basis, excluding the effect of the deconsolidation, sales, net income and earnings per diluted share all improved.

On an “as reported” basis, first quarter net sales of $894.8 million were 2.3% below the $916 million reported a year ago. Net income attributable to RPM stockholders of $69 million was off 5.5% from last year’s record $73 million. First quarter diluted earnings per share were $0.53, a 7% decrease from the $0.57 reported a year ago. Consolidated EBIT was $122 million, up 1.1% from the $120.7million in the fiscal 2010 first quarter.

On a pro-forma basis, assuming the deconsolidation of SPHC subsidiaries had been in effect during the first quarter of fiscal 2010, sales increased 6.1% to $894.8 million, up from $843 million a year ago. Pro-forma net income attributable to RPM stockholders improved 8.3%, to $69 million from $63.7 million in the fiscal 2010 first quarter, while pro-forma diluted earnings per share were up 8.2%, to $0.53 from $0.49. Pro-forma consolidated EBIT grew 7.8%, to $122 million from $113.2 million a year ago.

“As announced last quarter, we will gauge our results going forward from the end of our last fiscal year on a pro-forma basis, taking into account the impact of the SPHC deconsolidation,” said Frank C. Sullivan, chairman and CEO. “On an apples-to-apples basis, we are pleased with our first quarter results in this challenging economy. We were especially encouraged by a sharp improvement in sales by our industrial segment.”

For more information, visit www.rpminc.com.